Semiconductor manufacturers play a vital role in powering today’s global economy—from smartphones and electric vehicles to medical equipment and defence systems. But with high-value equipment, ultra-clean environments, and complex production processes, a single incident can halt operations and cause millions in losses. That’s where semiconductor manufacturing insurance in California becomes essential.
Why Semiconductor Manufacturers Need Custom Insurance Coverage
Operating a semiconductor fabrication facility (fab) or chip packaging plant involves enormous investment, precision, and risk. From supply chain delays to cleanroom contamination and equipment breakdown, you face unique exposures that standard commercial insurance simply can’t cover.
A dedicated insurance policy—backed by Western Insurance—offers protection tailored to your production environment and liability concerns, whether you’re running a small foundry or a leading chip fabrication site in California.
Key Risks in Semiconductor Manufacturing
Semiconductor production is capital-intensive and sensitive to disruption. Common risks include:
Cleanroom contamination causing yield loss
Equipment failure involving photolithography or ion implantation systems
Worker injuries from exposure to toxic gases or chemicals
Product defects leading to large-scale recalls or OEM claims
Business interruption due to utility failure or supply chain issues
Cyberattacks targeting automation systems or intellectual property
Essential Coverages for Semiconductor Manufacturing Insurance
1. Business Owner’s Policy (BOP): A custom BOP combines general liability, commercial property, and business interruption insurance—crucial for protecting cleanrooms, precision tools, and facility infrastructure.
2. General Liability Insurance: Covers third-party claims of injury, property damage, or product malfunction caused by your semiconductors.
3. Product Liability Insurance: Protects against lawsuits related to defective chips or failed semiconductors used in consumer or industrial products.
4. Equipment Breakdown Insurance: Covers repair or replacement costs for essential manufacturing tools, from etchers to wafer testers.
5. Workers’ Compensation Insurance: Required by California law to cover medical bills and lost wages for injuries due to chemical exposure, repetitive strain, or machine accidents.
6. Cyber Liability Insurance: Safeguards against ransomware attacks, intellectual property theft, and production system disruptions caused by data breaches.
7. Surety Bond Insurance: Ensures compliance for government contracts, R&D projects, or major semiconductor supply agreements.
Coverage for All Types of Semiconductor Operations
No matter your niche in the chip-making ecosystem, we provide policies designed for:
Wafer fabrication plants (fabs)
IC (Integrated Circuit) design and testing firms
Semiconductor packaging and assembly plants
Photomask production units
Fabless semiconductor companies
MEMS (Microelectromechanical Systems) and analog chip manufacturers
Benefits of Specialized Semiconductor Insurance
Working in nanometers, there’s no room for error. With semiconductor manufacturing insurance, you can:
Prevent costly downtime with responsive claims and business interruption coverage
Comply with ISO, ITAR, or other industry certification requirements
Protect against contract liabilities and supply chain disruptions
Secure global coverage if you serve international OEMs or foundries
Scale your policy as your operation expands
Get a Free Semiconductor Insurance Quote in California
From wafer to final chip, every step in the semiconductor process carries financial and operational risk. Let Western Insurance help you create a tailored policy that keeps your fab or design firm protected and competitive.